Cost-Volume-Profit Analysis Is a Technique Available to Management to Understand

question 103

Multiple Choice

Cost-volume-profit analysis is a technique available to management to understand better the interrelationships of several factors that affect a firm's profit.As with many such techniques,the accountant oversimplifies the real world by making assumptions.Which of the following is not a major assumption underlying CVP analysis?

• A)All costs incurred by a firm can be separated into their fixed and variable components.
• B)The product selling price per unit is constant at all volume levels.
• C)Operating efficiency and employee productivity are constant at all volume levels.
• D)For multi-product situations,the sales mix can vary at all volume levels.

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Definitions:

High Goal

An ambitious objective or aim that is often challenging to achieve but highly rewarding.

INAH3

The third interstitial nucleus of the anterior hypothalamus, involved in sexual behavior and linked to sexual orientation in some research.

Anterior Hypothalamus

A region of the hypothalamus involved in regulating temperature, sleep, and aggression.

Simon LeVay

A neuroscientist known for his research into the biological bases of sexual orientation, notably through studying human brain structures.